Appointment of Cost Auditor by Companies - Changes in Procedure
IN continuation of the General Circular No. 15/2011 dated 11thApril 2011, Ministry of Corporate Affairs has made the following changes:
1. The company shall, within thirty days from the date of approval by MCA of the application made to the Central Government in the prescribed Form 23C seeking its prior approval for the appointment of cost auditor, issue formal letter of appointment to the cost auditor, as approved by the Board.
2. The cost auditor shall, within thirty days of the date of formal letter of appointment issued by the company, inform the Central Government in the prescribed form 23D, along with a copy of such appointment.
3. In case of change of cost auditor caused by the death of existing cost auditor, companies are allowed to file fresh e-form 23C, without any additional fee, within 90 days of the date of death. The additional fee payable as per the Companies (Fees on Applications) Rules, 1999 [as amended] shall become applicable after expiry of the said 90 days. Accordingly, e-forms 23C and 23D are being modified to capture such details.
4. In case of change of cost auditor for reasons other than death of the existing cost auditor, companies are required to file fresh eform23C with applicable fee & additional fee, clearly specifying the reasons of change.
This will come into force with effect from 1.1.2013
MCA General Circular No. , Dated: November 06 2012